Bromley council tax rises as leader warns on 'ugly situation'

Households will see an increase of 5.79 per cent increase - including the GLA's element - as the borough looks to balance its books following years of unprecedented austerity.

In the last decade, Bromley has had to remove £90m a year out of its budgets – but remains London’s only debt-free borough.

The council has filed a balanced budget for this year, but leader Colin Smith said there will be difficult decisions ahead as he committed to pressuring the government for more cash for London.

Cllr Smith said at a meeting on February 25: “The ability to increase council tax has been assumed in the Government’s calculation of Bromley’s grant reductions, which frankly means if we don’t do it they will assume we don’t need the money.

“As we continue to face funding reductions, cost pressures and population growth, the challenges we face cannot be underestimated.

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“I will lobby tirelessly for a better deal from Government for Bromley. I have the relentless determination to secure a better deal. We have a funding mechanism that doesn't rewards us for being an efficient authority. It simply isn’t working for boroughs setting low tax.

“Balancing this budget has, truth be told, been relatively easy. We have achieved it without making uncomfortably difficult decisions – I fear that is a luxury that will be denied for us moving forward unless government policy around funding local councils changes.

“All boroughs are now seriously looking over the edge of a very ugly situation. We need to plan as if help isn’t coming. It’s not going to be easy for anyone.”

The council agreed to increase its element of council tax by 2.99 per cent, on top of a two per cent increase ring-fenced for adult social care.

The council will use uncommitted growth and investment cash for housing and reducing pressure on homelessness, a priority for the administration.

Bromley Labour tabled an amended budget at the full council meeting, calling for commercial properties to be sold and for the council to buy successful businesses, offsetting investements through savings to fund initiatives including new houses and “town centre assemblies”.

The opposition also called for increased budgets for CCTV, exempting care leavers from paying council tax and pumping money into setting up youth violence commissions.

Opposition leader Angela Wilkins said: “We would replace the culture of savings and cutting costs as being priority.

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“We would put people at the top of our priority list. We are delighted to see that members opposite are starting to do what we said four years ago and build social housing. We would have started building four years ago because it is the best thing for our residents.

“This model offers a new way of working that is badly needed. Our proposals are ambitious but achievable. There’s nothing breaking the budget, Bromley deserves better.”

Labour’s budget was written off by Conservative councillors, who accused the opposition of either filing a series of gimmicks, or initiatives that are already in place.

Labour’s amendments were rejected, and Labour subsequently voted against the council’s final budget.

Councillor Graham Arthur, cabinet member for resources, commissioning and contracts management, added: “This is a balanced budget based on careful sustained stewardship but also contains innovation.

“The tax increase is to be regretted, but 97 per cent of all councils have intentions to increase tax. It’s worth reflecting our settlement is the second lowest per head of any London borough.”